In economics, capital is defined as
A)natural resources, such as water, oil, and iron ore
B)the natural, unskilled abilities of people
C)human creations used in the production process
D)money and other financial assets
E)the willingness of business owners to take risks

Question

Quizplus · Accepted Answer

Capital refers to any human-made resource used in the production of goods and services, such as buildings, machinery, and equipment. Natural resources (A) are not considered capital because they are not human-made. Natural abilities of people (B) are not considered capital either because they are not physical resources used in production. Money and financial assets (D) are a form of capital, but not the only form. Finally, willingness to take risks (E) is a personal trait, not a physical resource, and is not considered capital.

In Economics, Capital Is Defined as